An Italian investor group pressed ahead with a binding offer for Alitalia hours before a deadline expired on Friday, as Italy‘s government pressured the airline’s unions to accept the rescue deal.

CAI said in a statement it had decided to go ahead without the support of pilot and flight staff unions and presented a binding offer buy Alitalia’s best assets, which it plans to merge with those of smaller rival Air One.

The four unions supporting the deal carry most of the clout.

“In the end a sense of responsibility prevailed, just as we had always hoped,” Infrastructure Minister Altero Matteoli said. “The new Alitalia can finally take off now.”

Barring another last-minute upset following months of national angst over the future of an Italian symbol, the offer should secure the future of cash-starved Alitalia which is just weeks away from grounding its planes for lack of fuel.

CAI made the offer after a day of meetings between unions, the government and their executives.

The next step will be to bring in a foreign airline to help run Alitalia together with the fleet of domestic rival Air One. Air France-KLM and Lufthansa are in contention for an initial stake of up to 20 percent in the controlling group.

Air France-KLM Chairman Jean-Cyril Spinetta declined comment at a conference in Paris, but warned the industry faced a spate of mergers or bankruptcies. ID:nLV505730

The decision on a foreign partner is not expected for several weeks. The deal is still contingent on winning approval from European regulators. Alitalia’s bankruptcy commissioner is eager to wrap up the takeover by CAI by mid-November.

He said the airline will be forced to seek new funds in tight credit markets if a deal is not signed by then.

Keeping Alitalia alive was one of the main election planks on which Italian Prime Minister Silvio Berlusconi ran for office in April, and his government has since rewritten bankruptcy law to pave the way for a bailout by the CAI consortium.

Alitalia filed for bankruptcy in August after dodging the move for years as it battled with frequent strikes, rising oil prices, inefficiencies and political interference.

It came close to being liquidated last month when unions initially rejected job cuts planned under CAI’s takeover. But its fortunes turned around just as swiftly after the labour groups abruptly changed their stance.

All the unions — including the pilot and flight assistant groups — say they support CAI’s takeover of Alitalia in principle, but some are upset about terms and conditions included in new labour contracts under the takeover.

source: www.guardian.co.uk